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Forums - Gaming - Ubisoft reveals profit margins for physical versus digital sales on console

shikamaru317 said:

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 

They could always spend less money on the games themselves to increase profits. No one is putting a gun to their heads here. 



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Cobretti2 said:
John2290 said:
Well more of my money goes to the publisher and back into the gaming industry, good to know. I was starting to feel bad taking money away from gaming stores here which are looking in dire straights.

You mean more goes into shareholders pockets? and teens loose out on jobs in game stores.

The biggest offense to digital games is the loss of consumer freedom and rights. 



AlfredoTurkey said:
Cobretti2 said:

You mean more goes into shareholders pockets? and teens loose out on jobs in game stores.

The biggest offense to digital games is the loss of consumer freedom and rights. 

Yes it is. but if they gonna cry poor. increase the price of physical games. They been at $60 since last gen. $70-$80 for a AAA game is not that expensive.



 

 

I quit buying physical on all platforms except for when I get my switch, made that decision last year and it was a hard one since I own over 500 games physically.

Yet its the future and I feel like my digital games will stay with me longer.




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VGPolyglot said:
It's interesting noting the differences between the gaming and music industries, the former is trying to push digital hard while the latter tried to resist it for as long as they could.

Don't the actual bands themselves make a majority of their money on performing at concerts? I remember when Radiohead got out of their record label and started publishing their own albums, they actually did a "pay what you want" system where you could pay 0.01$ to download their 7th album. I think the difference is that with music, because the product is not interactive, making digital the future leads to a few ways of experiencing music in a fashion that, while easier, isn't necessarily making more profit. Examples such as: streaming, piracy, or buying individual songs(I think singles costed more back then?). The digital marketplace also allows for way more competition in the industry as people can more easily access different niches. 

I could be wrong though, that just seems to be the information I've heard based on occasionally hearing the truth to be as such.



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So now not only people who buy used are scumbags but people who buy physical as well. Poor devs.



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Good to see first hand but this has been known for a long time.



Cobretti2 said:
AlfredoTurkey said:

The biggest offense to digital games is the loss of consumer freedom and rights. 

Yes it is. but if they gonna cry poor. increase the price of physical games. They been at $60 since last gen. $70-$80 for a AAA game is not that expensive.

Would that put an end to DLC though or the process of chopping up games to sell at a later date in make more money? And if games were eight dollars, would people still buy them? I know I wouldn't pay eight dollars for a single game lol.



Digital is no doubt the future but it paves a very dangerous path for us consumers. The digital store will be monetized to death, publishers will have a direct hand to control prices and many games won't get the exposure they deserve and will no doubt be tucked in the corner of the store. Huge AAA games like COD 20, Destiny 3, etc... will always be front and center on the store page and will be heavily advertised while smaller games will be forgotten.

I mean have you seen the Xbox store? it's littered with ads for Sea of Thieve and PUBG while owlboy is nowhere to be seen, not to mention the Xbox Games Pass literally begs itself to be bought whenever I browse my games list. Pretty recently the PS4 even had destiny 2 adverts on the home page!!!! I mean ads work way too well, Look at the success of PUBG on Xbox One even in its state, even HELLO NEIGHBOUR sitting at 38 in metacritic sold a sizeable amount on Xbox because it was heavily advertised.

Consumer freedom can and will be tampered with in the digital store, it's happening now and it will just get worse. And while deals are frequent they can never beat the price of second-hand games.



I'll never buy digital when a physical version is available, unless digital is like $10 or less for the game.